Functions of the NBFs
The following are the main functions perforated produce and provide near money and not money.Iii) Tile provide liquid assets the community. because their liabilities arc close substitutes for money,(iii) They pass on savings to ultimate investors and issue indirect securities to thc ultimate savers in return for savings. (iv) They create loadable funds or add to their nct supply by mobilizing existing money balances in exchange for their own newly, issued financial claims or liabilities.A note Oil innovation ill banking sector Commercial banks are financial intermediaries, with the sole objective of making profits. In 1969 Mrs. Indira Gandhi all of a sudden on 19-07-1969 announced the take-over (nationalization) of commercial banks. Then the objectives WC of two fold, (i) Profit making and (ii) development oriented, In a socialistic pa tern of society the government aims at maximisation of tot a! welfare of people including both economic as well as non-economic. The nationalisation of banks were essentially to overcome certain demerits as well as co nonsocial commitment of commercial banks. In the late instincts due to Varanasi Committee Report as wcll as the so .